liheap income limits and assets tests: a review of state policies
TRANSCRIPT
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LIHEAP INCOME LIMITS AND ASSETS TESTS: A
REVIEW OF STATE POLICIES
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INCOME MAXIMUMS: LIHEAP STATUTE• NO LOWER THAN 110% OF THE
FEDERAL POVERTY INDEX
• NO HIGHER THAN 150% OF THE
FEDERAL POVERTY INDEX, OR 60%
OF THE STATE MEDIAN INCOME,
WHICHEVER IS GREATER
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INCOME MAXIMUMS: 2005 HEATING ASSISTANCE• 110%: 4 STATES
• 111% - 149%: 14 STATES
• 150%: 20 STATES
• OVER 150%: 6 STATES
• 60% OF STATE MEDIAN INCOME: 6 STATES
• OTHER: 1 STATE (50% OF STATE MEDIAN
INCOME)
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INCOME MAXIMUMS 2005: CRISIS ASSISTANCE• 110% OF POVERTY: 2 STATES
• 111% - 149%: 13 STATES
• 150%: 22 STATES
• OVER 150%: 6 STATES
• 60% OF STATE MEDIAN INCOME: 7 STATES
• OTHER: 1 STATE (50% OF STATE MEDIAN
INCOME)
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INCOME MAXIMUM ISSUES
• FEDERAL FUNDING UNCERTAINTIES
• STATE STATUTORY, POLICY
RESTRICTIONS
• DILEMMA: PROVIDE SMALLER
BENEFITS TO MORE HOUSEHOLDS
OR LARGER BENEFITS TO FEWER
HOUSEHOLDS?
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INCOME MAXIMUM CASE STUDY: INDIANA• INCOME MAX= 125% OF POVERTY
• RATIONALE – WITHOUT ADVANCED
FUNDING, STATE DOES NOT FEEL
SECURE RAISING LIMIT
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INCOME MAXIMUM CASE STUDY: IOWA
• INCOME MAX = 150% OF POVERTY
• EXCEPTION – NON-REIMBURSED
MEDICAL EXPENSES CAN BE
DEDUCTED IF INCOME EXCEEDS
150%.
• LITTLE WORKLOAD ISSUE
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INCOME MAXIMUM CASE STUDY: CONNECTICUT• INCOME MAX= 150% OF POVERTY
• INCREASED MAX TO 60% OF STATE
MEDIAN INCOME WHEN FEDERAL
CONTINGENCY FUNDS RECEIVED
• ISSUE – ARE DENIALS FOR OVER-
INCOME RECONSIDERED WHEN
MAXIMUM RAISED?
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INCOME MAXIMUM CASE STUDY: UTAH• INCOME MAX = 125% OF POVERTY
• RATIONALE – DO NOT WANT TO
REDUCE BENEFITS TO SERVE MORE
• 20% REDUCTION FOR EARNED
INCOME
• DEDUCTIONS FOR MEDICAL, CHILD
SUPPORT AND ALIMONY EXPENSES
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INCOME MAXIMUM CASE STUDY: FLORIDA• INCOME MAX = 150% OF POVERTY
• WENT FROM 125% TO 150% 3 YEARS
AGO
• RESISTANCE TO INCREASE: BENEFITS
WOULD BE TOO SMALL
• RATIONALE FOR INCREASE: CAN NOW
SERVE 2-MEMBER ELDERLY HOUSEHOLDS
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INCOME MAXIMUM CASE STUDY: OKLAHOMA• INCOME MAX = 110% OF POVERTY
• RATIONALE – STATE VIEWS LIHEAP
AS “SAFETY NET” RATHER THAN
“INCOME SUBSIDY” PROGRAM
• SERVING ONLY 40% OF 110%
GROUP
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INCOME MAXIMUM CASE STUDY: WISCONSIN• INCOME MAX = 150% OF POVERTY
• SET BY STATUTE, THUS DIFFICULT TO CHANGE
• CONSIDERING FUTURE DEDUCTIONS FOR MEDICAL EXPENSES
• CONSIDERING RE-DEFINITION OF SEASONAL INCOME
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INCOME MAXIMUM CASE STUDY: COLORADO• INCOME MAX = 185% OF POVERTY
• RATIONALE 1 – BETTER TO HELP
MORE PEOPLE WITH FEWER
DOLLARS THAN FEWER PEOPLE
WITH MORE DOLLARS
• RATIONALE 2 – IMPORTANT TO HELP
THE “WORKING POOR”
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INCOME MAXIMUM CASE STUDY: COLORADO (CONT.)• TWO-PAYMENT METHOD ALLOWS
STATE TO ADJUST BENEFITS UP OR DOWN BASED ON AMOUNT OF AVAILABLE FUNDS
• LIHEAP RECIPIENTS RECEIVE AUTOMATIC 60-DAY SHUTOFF HOLD
• LOCAL FUEL FUND AIDS THOSE ABOVE LIHEAP INCOME MAX
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INCOME MAXIMUM RECOMMENDATIONS1. SET HIGH TO HELP AS MANY HOUSEHOLDS AS
POSSIBLE, ESPECIALLY THE “WORKING POOR”
2. DO NOT LOWER INCOME MAX – COLORADO EXPERIENCE RESULTED IN PERMANENT LOST CLIENTS
3. PAY IN 2 INSTALLMENTS TO ALLOW MID- COURSE BENEFIT ADJUSTMENTS
4. COORDINATE WITH LOCAL FUEL FUNDS, SO THEY HELP THOSE LIHEAP CAN’T
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INCOME MAXIMUM RECOMMENDATIONS (CONT.)5. PUSH FOR FORWARD FUNDING
6. PUSH FOR INCREASED FUNDING
7. MAXIMIZE LEVERAGING EFFORTS
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ASSETS TESTS: STATE BREAKOUTS• 11 STATES CURRENTLY APPLY ASSETS TESTS
• MAXIMUM ASSETS RANGE FROM $1,500 TO
$10,000
• VARIOUS STATES ADJUST FOR HOUSEHOLD
SIZE, ELDERLY, ILLNESS
• NO STATE COUNTS HOME AS AN ASSET
• MOST STATES CONSIDER “LIQUID” ASSETS
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ASSETS TESTS: PRO
• GUARDS AGAINST HOUSEHOLDS WITH EXCESSIVE RESOURCES FROM QUALIFYING FOR LIHEAP
• PRESERVES FUNDS FOR THOSE IN THE GREATEST NEED
• KEEPS LIHEAP CONSISTENT WITH PUBLIC ASSISTANCE PROGRAMS LIKE TANF
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ASSETS TESTS: CON
• DISCRIMINATES AGAINST PEOPLE WHO SAVE, ESPECIALLY THE ELDERLY
• MUCH FALSE REPORTING – PUNISHES THOSE WHO REPORT ACCURATELY
• LOCAL OFFICE WORKLOAD
• IF PRIMARY CAR IS EXEMPT, WHAT IF IT’S A MERCEDES?
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ASSETS TESTS: CON (CONT.)• LENGTHENS THE LIHEAP
APPLICATION FORM
• THOSE WITH HIGH VALUE ASSETS
GENERALLY WILL NOT SEEK LIHEAP
ASSISTANCE ANYWAY
• WHERE DO YOU DRAW THE LINE?
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ASSETS TEST ELIMINATION: COLORADO EXPERIENCE• AS HEATING COSTS ROSE, ELDERLY
COMPLAINED TO LEGISLATURE (2001)
• ELDERLY DID NOT WANT TO DEPLETE SAVINGS TO QUALIFY FOR LIHEAP
• LOCAL LIHEAP OFFICES, CLIENT ADVOCATES STRONGLY SUPPORTED END TO ASSETS TEST
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ASSETS TEST ELIMINATION: COLORADO EXPERIENCE (CONT.)
• ONLY .4% REPORTED ASSETS OF OVER $10,000 IN FIRST TWO YEARS AFTER TEST ENDED
• ESTIMATED 10-15 MINUTES PER CASE SAVED IN PROCESSING TIME
• LIHEAP APPLICATION FORM SHORTENED BY ¼ PAGE